


Network Centric Manufacturing (NCM) is a manufacturing supply chain management approach that integrates the smart design, rapid assembly and seamless coordination of dynamic supplier networks to accelerate production, reduce costs and mitigate risk. By coordinating both the business and manufacturing processes at each tier of the production supply chain, NCM helps manufacturers in today’s distributed environment regain the efficiencies of single-facility production.
Many of today’s manufacturing industry issues stem from the challenge to coordinate complex, geographically dispersed suppliers that use different software platforms, manufacturing processes, business processes—and even languages. The lack of common systems or synchronized scheduling undermines on-time delivery, quality, and ultimately, profitability. Further, the disconnections across multiple supplier tiers can block the communication that enables innovation and cost control.
NCM offers a different type of infrastructure for coordinating these distributed manufacturing supply chains. Comprised of standards, technologies and business processes, the NCM infrastructure allows supply chain participants to “plug in once” to securely connect to other participants and interact in mutually beneficial ways. As a result, the disparate tiers of the chain gain the capability to function as a dynamic supplier network.
Dynamic supplier networks provide a more effective framework for managing and contributing to distributed manufacturing supply chains. Unlike the rigid chains that are prevalent today, dynamic supplier networks deliver value to every tier by allowing real-time responses to real-time demands. Each supplier gains access to appropriate levels of information that help them satisfy their performance requirements, and the buyer gains opportunities to effectively control costs and manage risk.
The NCM infrastructure enables these dynamic supplier networks. Dynamic supplier networks have three key traits that are necessary for efficiency improvements and cost control in manufacturing supply chains.
NCM acknowledges that the manufacturing industry will continue to function with geographically distributed supply chains, but improvements to communication, coordination, and agility can offer a competitive edge to all buyers and suppliers in the chain.
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